GENERAL DISCLAIMER FOR THIS PRESENTATION

• Any pictures or trade names of equipment, companies or services should not be construed to indicate an endorsement by the New Jersey Department of Environmental Protection of any product or service derived from same.

• The information within this presentation is slated to facilitate discussions on various existing and potential regulatory mechanisms. No final decision regarding this information is expressed or implied.

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WELCOME TO THE NJDEP

STAKEHOLDER MEETING FOR

ELECTRONIC WASTE RECYCLING

RULES DISCUSSION

N.J.A.C. 7:26A-13

October 2019

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OPENING REMARKS Why Amendments are Necessary

• To accurately reflect the revisions to the E-waste Law

• Refine Definitions

• Ensure roles and responsibilities are clearly articulated

• Clarify process

• Convenience Standard

• Timeframes

• Semi-annual Reporting Requirements

• True-Up

• Credit Tracking and Trading

• Compliance Issues and Enforcement

• Non-Compliance Fee 3

GOAL OF MEETING

Solicit input from stakeholders

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TOPICS OF DISCUSSION

Opening Remarks

Definitions

Roles & Responsibilities

True-Up Process

Reporting & Tracking

Convenience Standard

Credits

Compliance, Penalties, &

Fees

Open Discussion & Closing Remarks

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INTRODUCTION OF STAKEHOLDERS

• Before commenting, please state your name and affiliation.

• To ensure accurate notes, please speak slowly and clearly.

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INTRODUCTIONS

• Assistant Commissioner’s Office, Site Remediation & Waste Management

• Judith Andrejko, Esq., Regulatory Officer

• Bureau of Recycling & Hazardous Waste Management

• Karen Kloo, Bureau Chief

• Dana Lawson, Supervisor

• Jennifer Van Istendal, Environmental Specialist

• Evan Aleksejczyk, Environmental Engineer

• Scott Compton, Environmental Specialist

• Daniel Clark, Ph.D. Environmental Specialist

• Karen Jentis, Rule Assistant

• Bureau of Hazardous Waste Compliance & Enforcement

• Nick Baier, Environmental Specialist

• Press Office & Office of Communications

• Tanya Oznowich, Facilitator

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PROPOSED NEW & AMENDED DEFINITIONS

A. Authorized Recycler (AR)

B. Credit

C. Credit Trading

D. Convenience Standard

E. Weight

1. In-System

2. Out-of-System

F. True-Up

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ROLES & RESPONSIBILITIES

A. Authorized Recyclers (ARs)1. Subcontractors

2. Re-use Industry & Refurbishers

B. Manufacturers (OEMs)

C. Group Plan Administrators

D. Collection Site Operators

E. Local Government Units

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ROLES & RESPONSIBILITIES

A. Group Plan Administrators (GPAs)1. Credits

2. Contract with manufacturers

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CURRENT CONVENIENCE STANDARD

A. County-by-County evaluation

B. Factors to determine sufficient and convenient:1. Number of municipalities per county2. Population of town/county3. County size4. Population density5. Quantity of sites and events6. Collection site limitations7. Local government and consumer

feedback8. Capacity of site9. DEP experience

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CONVENIENCE STANDARDWith all these factors in mind, is there any additional information that the Department should consider when reviewing the overall quality of the network that we are not currently? The following list of questions are items that we would like your feedback on:

1. What do you consider sufficient and convenient? (keeping in mind distance, proximity, & hours of operation)

2. How many events are equivalent to 1 permanent site open to all NJ consumers?

3. How far in advance, and what type, of advertising should be required for events?

4. How do you ensure collection sites are aware that they are in an approved plan and have reporting obligations?

5. What are other states doing that seem to be working? (How is the Illinois program going and can NJ incorporate anything from other states?)

6. If you use GIS mapping to determine where you want sites, would you mind sharing with the DEP?

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CLASS D

A. Define

B. A Class D acting as an Authorized Recycler ALWAYSneeds to register with the DEP and submit appropriate

certifications (R2, e-Steward, or other)

C. A Class D does NOT need to pay the AR registration fee

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CLASS D REPORTING SCENARIO 1

A. Class D only collecting/transporting but NOTrecycling

1. Should be listed as a subcontractor in collection plan and only submits “collection site/LGU” SAR

2. Must also be listed as a collection site in a plan

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CLASS D REPORTING SCENARIO 2

A. Class D acting as a drop off location and recycling ALL the collected program weight as an AR

1. Must be listed as an Authorized Recycler in collection plan and a collection site location

2. Must submit “collection site/LGU” semiannual report (SAR) AND AR SAR

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CLASS D REPORTING SCENARIO 3

A. Class D acting as a drop off location and recycling SOME of the collected program weight as an AR and sending some weight to another AR

1. Must be listed as a collection site, a subcontractor, and an AR in plan.

2. Would submit an LGU/collection site report and an AR report

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CLASS D FEEDBACK

A. Class D as an Authorized recycler, but charging a fee to SOME towns, and not others

1. Should this be allowable? It makes for complicated SARs and removes eligible weight from the system

B. Why do OEMs not utilize more NJ Class D facilities as AR?

1. Pro v. Con of Class D and Out-of-State AR?

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This slide is from a presentation by

Resource Recycling Solutions

(Recycle.com)

© RRS 2017

18

This slide is from a presentation by

Resource Recycling Solutions

(Recycle.com)

© RRS 2017

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REPORTING & TRACKING

A. Intermediaries

1. Too many entities handle weight and send to different downstreams

2. All subcontractors must be listed in approved plan (this includes any transporter/handler)> part of R2/E-stewards

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REPORTING & TRACKING

A. Clarity/transparency in tracking weight

B. What information should be on a form to enable easier tracking?

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REPORTING & TRACKING

A. Shared Sites

B. Authorized Recyclers reporting back to LGUs 1. Municipalities delay submissions due to lack of timely info from

ARs

C. Considering one site to one plan/OEM – thoughts?

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VERIFYING REPORTED WEIGHT

A. If weight cannot be verified, it cannot be counted toward OEM obligations

B. Why would there be weight discrepancies on ARs own internal documentation? Aren’t you billing/getting billed for the same amount?1. How often are scales calibrated?

2. Small business weight a particular area of concern

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A. Suggestions for transparent methods to report weight to DEP for verification

1. Would changes to the Semiannual report format be helpful?

B. How do we fix this and make it easier for everyone involved?

1. Standardize what info. needs to be on BOL/Tracking forms (model after other programs?)

2. What information is available vs. not practical to get from the ARs/intermediaries? Limit intermediaries?

3. All parties need to be R2/eSteward compliant, preserving records for 3 years> would R2 forms be another potential format to use?

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VERIFYING REPORTED WEIGHT

OUT-OF-SYSTEM WEIGHT

A. The goal is to eliminate out-of-system weight

1. Obstacles?

2. Is outreach the issue?

3. Are there joint opportunities to achieve this goal?

B. How DEP is going to count out-of-system weight

1. DEP will use previous year’s out-of-system weight when calculating following year’s estimated obligation

2. D. Should OEMs be allowed to purchase out-of-system weight?

a. If collection site uses an AR

b. OEM notifies DEP that the collection site is being added

c. Must occur before SAR due

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TRUE-UP PROCESS

True-up is a two step process:

• Step 1: Calculating the total weight of CEDs actually collected by manufacturers in a program year, based on the semiannual reports submitted by manufacturers, collection site locations, and authorized recyclers

• Step 2: Calculating manufacturers actual obligation using the program years total weight collected and determining whether the manufacturers under-collected, met, or exceed their obligations

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CREDIT TRACKING & TRADING

N.J.S.A.13:1E-99.103(h):

“Manufacturers that collect, transport, and recycle covered electronic devices in excess of their obligation may sell credits to another registrantor apply that excess to the following year's recycling obligation; provided that no more than 25 percent of a manufacturer's obligation for any program year may be met with credits generated in a prior program year. No manufacturer or group of manufacturers, as the case may be, may cease implementing its plan required pursuant to subsection e. of this section and approved by the department, during any program year by using credits.”

"Registrant" means a manufacturer of covered electronic devices that is in full compliance with the requirements of P.L.2007, c.347 (C.13:1E-99.94 et seq.).

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CREDIT TRACKING & TRADING

N.J.S.A.13:1E-99.103(m):

“The department may allow a group plan administrator to fulfill a manufacturer’s responsibilities on its behalf under this section, including registration, payment of registration fees, and submission of plans. If a group plan administrator collects, transports, and recycles covered electronic devices in excess of the total combined market share in weight obligation for the manufacturers under contract with that group plan administrator, the group plan administrator may sell credits, or apply credits to the following year’s obligation, as provided in subsection h. of this section. The provisions of this subsection shall not relieve any manufacturer of its obligations under P.L.2007, c.347 (C.13:1E-99.94 et seq.). If a group plan administrator fails to fulfill a manufacturer’s responsibilities on its behalf, the department may take enforcement action against the manufacturer.”

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CREDIT TRACKING & TRADING

A. Credit process being considered by the DEP:

1. Credit is weight collected in excess of a registrants obligation (1 pound = 1 credit)

2. 45-day trading period during which all trades must be submitted

3. Trading form to be found at the DEPs website

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CREDIT TRACKING & TRADING

A. Trading period for PY begins April 1, PY+1 (post SAR 2/True-up)

B. First Credit Statement:

1. Actual obligation 4. Shortfall/surplus amount

2. Previous PY credits applied 5. List of OEMs with credits

3. Weight collected

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A. Trading period ends on May 16, PY+1

B. Second Credit Statement:

1. Actual Obligation 4. Credit purchase/sold

2. Previous PY credit applied 5. Shortfall/surplus amount

3. Weight collected

CREDIT TRACKING & TRADING

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CREDIT TRACKING & TRADING

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January 1, PY PY

Registration

January 30, PY PY +1 Market share %

determined

February 15, PY PY+1 Market share weight

obligation issued

April 15, PY PY +1

Collection plan submitted

August 1, PY PY Semi-Annual

Report #1 submitted

February 1, PY+1 PY Semi-Annual

Report #2 submitted

April 1, PY +1 PY Credit Trading

Period Start (Statement #1)

May 16, PY +1 PY Credit Trading

Period End (Statement #2)

STATUTE ESTABLISHED DATES

“TRUE UP”

Feb 1, PY PY-1 Semi-Annual

Report #2

Jan 1, PY +1 PY +1 Registration

Jan 30, PY +1 PY+2 MS % determined

COMPLIANCE

A. Compliance List for all parties (OEMs and ARs) 1. Posted on NJDEP webpage:

https://www.state.nj.us/dep/dshw/ewaste/index.html

2. Retailers consult with the webpage before selling products

B. Sale Ban 1. Prohibition for non-compliant OEMs to sell in NJ

C. Non-compliance fee1. Imposed on entire obligation2. In statute – would require a legislative change3. This is not considered a penalty

a. Cannot request a hearing to dispute it

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ENFORCEMENT

A. Penalties1. Many violations will come with pre-determined penalties outlined in

rule – “Base Penalties”

a. Can be modified based on compliance history

b. Can be modified to serve as an appropriate deterrent

2. Violations without a base penalty will have penalty determined based on seriousness and conduct of violation.

3. Request for hearing must be submitted within 35 days of receipt of penalty.

4. If a request is not received within this timeframe the order is considered final and cannot be contested.

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GRACE PERIOD

A. All violations require OEMs to return to compliance within set timeframe.

B. Minor Violations1. No penalty assessed if compliance is achieved within given

timeframe.2. Compliance history may preclude the grace period.

C. Non-Minor Violations1. A penalty assessed regardless of whether compliance is

achieved within timeframe or not.

D. For either type of violation, if compliance is not achieved within timeframe an Administrative Order is issued in addition to a penalty.

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N.J.A.C. 7:26A-13.5 CLARIFYING CERTIFICATION REQUIREMENTS

A. Adding language to rules to clarify who may sign certifications

1. Corporation

2. Limited Liability Company

3. Partnership

4. Sole Proprietorship

5. Local Government Unit (LGU)

6. Duly authorized representative

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CLOSING REMARKS

A. Summaries of the topics covered at the meeting and relevant information will be made available following the meetings at https://www.nj.gov/dep/workgroups/index.html

B. Following proposals of the rule changes, formal comments on the rules can be made by anyone during the announced comment period.

C. If you would like to provide additional comments based on this meeting, please send them to: ecycle@dep.nj.gov

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